If Max experiences a decrease in his income, then we would expect Max's demand for
a. each good he purchases to remain unchanged.
b. normal goods to decrease.
c. luxury goods to increase.
d. inferior goods to decrease.
b
Economics
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Adverse selection is
a. when people act differently because they are insured b. when more risk averse people want to be insured more c. when people at greater risk want to be insured more d. when your guess at a test question is wrong
Economics
A profit-maximizing monopolist will continue expanding output as long as
a. marginal revenue exceeds marginal cost. b. marginal revenue is positive. c. the cost of producing an additional unit exceeds the marginal revenue derived from the unit. d. economic profit is more than zero.
Economics